Annually, a statewide school dropout study is conducted in New Mexico. The purpose of the study is to gather and publish information bearing on the extent and nature of the dropout problem in New Mexico public schools. Data on the grade, sex, ethnicity, and reason for dropping out were collected for students who prematurely discontinued their formal education. This issue of the Dropout Study provides detailed information covering the 1988-1989 school year. Survey instruments were sent to each public school in New Mexico that had students enrolled in grade seven or higher. The information presented in this report also includes data from prior years' surveys and show trends over a period of time. This year's data include information for 88 New Mexico public school districts and from 100% of the 243 schools surveyed. A listing of the school districts and schools included in this report, along with their reported number of dropouts, 180-day membership, and dropout rates, is included in the appendix. Statewide summary data by ethnicity, gender, and grade can be found in various graphs and tables within the report. (ABL)